Has Altria Stock Been Good For Investors?

By Jeremy Bowman – Dec 18, 2025 at 8:56AM ESTKey PointsAltria has underperformed the S&P 500 in recent years.The stock remains a dividend powerhouse with a yield above 7%.Its future is tied to next-gen products like Njoy and On!These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: MOAltria GroupMarket Cap$99BToday's Changeangle-down(-0.25%) $0.15Current Price$59.18Price as of December 17, 2025 at 4:00 PM ETTake a look at how the stock has done in recent years.Tobacco stocks like Altria (MO 0.25%) were historically some of the best stocks on the market. Altria, which was joined with Philip Morris International for most of its history, delivered an annual average return of 20% for 50 years with dividends reinvested, thanks to a high-margin, addictive product, and its commitment to growing its dividend. More recently, however, the stock has struggled as cigarette sales in the U.S. continue to decline, and its attempts to pivot to next-gen products have faced multiple setbacks. Looking back over one-year, three-year, and five-year time frames, the tobacco stock has not outperformed the S&P 500 on a price appreciation basis. However, over the last year and over a five-year time frame, it has beaten the broad-market index on a total-return basis. The charts below show how Altria compares with the S&P over those periods. Altria vs S&P 500 1-year chart: MO data by YCharts Altria vs S&P 500 3-year chart: MO data by YCharts Altria vs. S&P 500 5-year chart: MO data by YCharts As you can see over a longer period of time, Altria's stock performance against the S&P 500 has been modest, but it's still delivered a solid performance thanks to its dividend. During that time, the company saw its $12.8 billion investment in Juul essentially blow up as regulators killed Juul's business, and its investment in cannabis grower Cronos Group also went south. Image source: Getty Images. Has Altria paid off for investors? Most investors own Altria for its dividends. The company has historically paid a high dividend yield, and it has a history of raising its dividend every year. In fact, Altria has raised its dividend 60 times in the last 56 years, and it now offers a dividend yield of 7.2%. For dividend investors, it's hard to beat that combination of yield and reliable growth.Advertisement Looking ahead, while cigarette sales have continued to decline, the company is hoping to drive profits higher with a combination of price hikes on cigarettes and new products, including Njoy, a vaporizer brand it acquired after Juul failed, and On!, its oral nicotine pouch that's a competitor to Philip Morris's Zyn. Altria now trades at a low price-to-earnings ratio of 11.3, and its cash flow machine continues to look reliable. If it can get some growth out of products like On! and Njoy, the stock should deliver price gains in addition to a strong dividend for investors. About the AuthorJeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011.

Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.TMFHoboX@TMFBowmanRead NextDec 15, 2025 •By Leo Sun1 Stock I'd Buy Before Altria (MO) In 2026Dec 15, 2025 •By Stefon WaltersHere's How Many Shares of Altria You'd Need for $500 in Yearly DividendsDec 13, 2025 •By Lawrence Rothman, CFAIf You Had Invested $1,000 in Altria Group Stock 1 Year Ago, Here's How Much You Would Have TodayDec 11, 2025 •By Stefon WaltersIs This Ultra-High-Yield Dividend Stock a No-Brainer Heading Into 2026?Dec 11, 2025 •By Justin PopeIs Altria's 7.3% Yield Safe? This 1 Thing Matters Most in 2026Dec 6, 2025 •By Reuben Gregg BrewerCould Buying High-Yield Altria Today Set You Up for Life?